Dangote Industries Defends Diesel Quality Amidst Allegations

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Dangote Industries Defends Diesel Quality Amidst Allegations

Dangote Industries Limited (DIL), led by Aliko Dangote, has recently responded to allegations made by the Nigerian Midstream and Downstream Petroleum Regulatory Agency (NMDPRA) regarding the quality of its diesel. According to Dangote, the claims that its diesel is inferior to imported alternatives are unfounded and misleading.

During a recent tour of DIL’s facilities with members of the House of Representatives, Aliko Dangote addressed the concerns raised by NMDPRA’s Chief Executive, Farouk Ahmed. Ahmed had previously asserted that the 650,000 barrels per day (bpd) Dangote refinery was operating without proper licensing and that its diesel was of lower quality compared to imports.

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Anthony Chiejine, the spokesperson for Dangote Industries, vehemently dismissed the allegations. He highlighted that the quality of diesel produced by DIL is at a significantly lower level of sulfur compared to the imports that have historically entered Nigeria. According to Chiejine, diesel imports into Nigeria were previously up to 7,000 parts per million (ppm) of sulfur, whereas Dangote’s diesel is currently produced at a much lower sulfur content, making the comparison to imported diesel misleading.

Chiejine criticized the notion that medium sulfur diesel is exclusively for off-road use, calling it a “false statement” and suggesting that if this were true, it would imply that all imported diesel over the past two decades had been damaging equipment. He also questioned why high sulfur diesel was sold at higher prices before Dangote’s operations began if it were supposedly less expensive.

Dangote has invited the House of Representatives to set up a committee to verify the quality of its diesel. He emphasized that while the refinery initially produced diesel with a sulfur content of 600–700 ppm, it has since improved its production to 87 ppm, with plans to further reduce it to 10 ppm by the end of August. Dangote has called for independent verification of their diesel quality to counter claims of fake test certificates.

Dangote Industries has also addressed recent online reports criticizing the quality of its products. The company has labeled these reports as “mischievous” and intended to damage its reputation. Chiejine clarified that the reduction in diesel prices by Dangote was a result of the company’s commitment to national interest and market dynamics rather than a reflection of product quality.

In June, Dangote Refinery had accused NMDPRA of facilitating the importation of substandard diesel and jet fuel. Devakumar Edwin, Vice President of Oil and Gas at DIL, criticized the regulator for indiscriminately licensing the importation of high-sulfur petrol from Russia, especially after Western countries imposed caps on Russian petroleum products. Edwin alleged that these products were being dumped into Nigeria’s market by traders.

Furthermore, Dangote’s leadership has accused International Oil Companies (IOCs) of price manipulation aimed at undermining the refinery’s market position.

Dangote Industries Limited stands firm in its claim that its diesel is of superior quality compared to imports and has called for a transparent review process to dispel any doubts. As the debate continues, the company’s commitment to maintaining high standards and addressing regulatory and market challenges remains a focal point in the ongoing discussion about Nigeria’s petroleum industry.

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